Permalink Submitted by Alan - IRA critic on Thu, 2023-02-23 22:51
All Roth IRA distributions, whether from an annuity or not, are taxed according to the Roth IRA ordering rules. Prior to the Roth being qualified (probably at 59.5), the balance of regular contributions come out first tax and penalty free, then conversions in chronological order. Taxable conversions not held 5 years would be subject to the penalty. Earnings come out last subject to both tax and penalty, but perhaps earnings would not be reached before 59.5.
Permalink Submitted by Alan - IRA critic on Thu, 2023-02-23 22:51
All Roth IRA distributions, whether from an annuity or not, are taxed according to the Roth IRA ordering rules. Prior to the Roth being qualified (probably at 59.5), the balance of regular contributions come out first tax and penalty free, then conversions in chronological order. Taxable conversions not held 5 years would be subject to the penalty. Earnings come out last subject to both tax and penalty, but perhaps earnings would not be reached before 59.5.